Background:  Social media is a constantly growing medium for communication that enables companies to interact with current and potential customers. It is of utmost importance that companies learn how to use social media in order to engage their customers, which will lead to greater customer loyalty. There is a large amount of literature on social media and customer loyalty separately, but not on how these subjects relate and interact. Therefore, the case study performed involving Mormor Magdas Därproducerade Glass will put focus on the activities that engage customers, which can lead to loyal customers.  Purpose:  The purpose of this thesis is to develop a better understanding of how small firms increase customer engagement through social media, leading to the creation of greater customer loyalty. Method:                           A qualitative approach to the research has been chosen which consists of a single case study that will allow for a deeper analysis of the subject. Data collection was performed through two interviews with the owners of the case study company and several observations of the company’s social media uses. Conclusion:                         By following the model provided in this thesis, more effective uses of social media for a small business are demonstrated, which will engage customers and enhance the company’s image, leading to greater customer loyalty. This model will also give a business a simplified picture of social media uses and how to use them properly. The case study shows a business the types of posts that are effective in engaging customers: frequent updates, prompt responses to all queries, and a focus on the specific social media platforms that are the most fruitful for each particular business’s needs.